Summary: Walmart Damages Local Economies

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Walmart Damages Local Economies
Introduction
Walmart's arrival to some communities can cause drastic harm to local businesses by dominating the competition, terminating more jobs than are created, and by essentially creating a monopoly. Walmart exploits chinese exports; which become so cheap because of china's abuse on labor laws. This in itself has become a big controversy for many years. Is an open market with china good for the American economy? The answer is no. It is creating larger deficit spending, and while low prices are good for consumers, it is not good for inflation. For some in the public that are looking for jobs to have income and support a family can’t because the jobs have been given to poor chinese people working outrages …show more content…
Because of the free transportation Walmart creates opportunities to have more customers than their competitors. One of the only advantages smaller business have on walmart is location. Because local businesses started first they had the chance to get good locations in the community. Location is a very important part of business because often consumers go to the closest source for what they need. Walmart takes away these businesses “leg up” because they can afford to have a bus take customers away from local stores. People could say that this is a good competition strategy, but it is not good for the local economy. Bill de Blasio wrote in his article Wal-Mart Means Fewer Jobs, Less Small Businesses, More Burden on Taxpayers, ‘Chain stores, like Wal-Mart send most of their revenues out of the community, while local businesses keep more consumer dollars in local economy: for every $100 spent in locally owned businesses, $68 stayed in the local economy while chain stores only left $43 to re-circulate locally.’ This is bad for economy because local businesses keeps the money circulating in the community while Wal-Mart takes the majority of it out of the local …show more content…
After Walmart closes other businesses consumers have no other place to shop, on top of that they no longer can afford to shop other places because they no longer have a sizable income. In an article written by Mark Thoma entitled The Case Against Wal-Mart it says, “One of the basic premises of the free-market system is that actors are free to buy from or sell to a variety of other actors... Those who would use the word "free" to describe the market over which Wal-Mart presides should first consult with Coca-Cola's product-design department... These results were decided not within the scrum of the marketplace but by a single firm. Free-market utopians have long decried government industrial policy because it puts into the hands of bureaucrats and politicians the power to determine which firms "win" and which "lose." Wal-Mart picks winners and losers every day, and the losers have no recourse to any court or any political representative
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